European Shares Seen Opening On Mixed Note

european market 021219 28dec22 lt

European stocks may open on a mixed note Wednesday, with U.K, markets likely to see modest gains at open as trading resumes after a long Christmas holiday weekend.

Asian markets traded mixed, with tech stocks coming under selling pressure amid a spike in Treasury yields.

The dollar edged higher against its major peers, reaching a more than one-week high versus the yen, after the Bank of Japan Summary of Opinions from the December meeting showed board members discussed growing prospects the country could see higher wage growth and sustained inflation next year.

Gold prices slipped as U.S. Treasury yields rose amid uncertainty over when the Fed will stop hiking rates. Oil prices were seeing modest gains in Asian trade on optimism surrounding China reopening.

The European economic calendar remains light, with no major reports due. Across the Atlantic, a report on pending home sales may attract some attention.

U.S. stocks ended mostly lower overnight as trading resumed following the long Christmas weekend.

The tech-heavy Nasdaq Composite tumbled 1.4 percent to reach its lowest closing level in well over a month and the S&P 500 dropped 0.4 percent as rising Treasury yields weighed on mega-cap growth stocks, offsetting optimism about China reopening plans. The Dow inched up 0.1 percent.

European stocks closed higher on Tuesday after China said it would end travel restrictions and quarantine for inbound travelers from Jan. 8 — symbolizing an end to its zero-COVID policy that has been in place for nearly three years.

The pan European STOXX 600 gained 0.1 percent. The German DAX rose 0.4 percent and France's CAC 40 index added 0.7 percent while the U.K. markets were closed for a public holiday.

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